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Yeah, but if the market crashes while you’re still overpaying your mortgage, now you’re out of a job AND potential savings that you can’t get back. With even in
by Xcelerate 5y ago
Yeah, but if the market crashes while you’re still overpaying your mortgage, now you’re out of a job AND potential savings that you can’t get back. With even inflation outpacing mortgage rates now, I’m not certain in what situation—even from a risk perspective—it makes more sense to pay down a mortgage more quickly than necessary. (With current rates at ~3%. Obviously in the late 80s it made sense to pay the house off as quickly as possible.)
- foobarian 5y agoI keep looking over the historical graph for broad indexes and I don't really see any window longer then 2-3 years where 3% would come out better. You just need a buffer to withstand those downturns.
- thedufer 5y agoVTSAX is a very popular broad-market index fund. Its price was overall flat from October 2007 to sometime in January 2013 - over 5 years - while returning dividends of around 1.5%. 3% beats that pretty handily.